Abstract
Abstract Producing 92 percent of the world's high-end chips, a critical component for the United States and a strategic asset China aims to control, Taiwan plays an important role in the New Cold War amid escalating tensions in the Taiwan Strait. Several conclusions emerge from the analysis of this role. First, improved communication among the United States, China, and Taiwan is essential. Second, a peaceful Taiwan Strait benefits all parties, as a Chinese invasion of Taiwan would have catastrophic global repercussions. Third, the future of Taiwan's status and the world economy heavily depends on the evolution of U.S.–China relations and whether China opts for aggressive or peaceful policies.
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